Financial Check Up

All activities in your business will be an experience that will be useful for the following year. Moreover, there is a pandemic and policies during the pandemic that make economic conditions fluctuate.

The end of the year is the right moment to conduct a large-scale evaluation of your business so that you know how the condition of the company is and what needs to be evaluated so that next year will be better than this year. One of them is by doing a financial check-up.

Here are some reasons why you need to do a Financial Check Up for your business.

1. To find out business growth

From the cash flow conditions we get in point one, of course we will know how our business is growing. Have you ever felt a lot of orders or work projects but the profit is not felt? Now, through this financial check-up, the discrepancy can be analyzed what causes it and how to anticipate it by looking at the company's financial ratios.

2. To find out asset growth

Assets, especially current assets, also need to be seen whether they are profitable or detrimental. If the asset is profitable then you can keep it. But if not you can consider letting go rather than harming your business.

3. To find out if your business is bankrupt or in surplus

Financial check-ups can help you see if your business is doing well or not. Moreover, the current pandemic has caused the economy to decline. For this reason, a financial check-up is needed to see how the condition of the company is so that you can design what strategies are used to improve the condition of the company.

4. To assist decision making

When knowing financial ratios, it will certainly help company management, for example in making decisions when making operational strategies.

5. To prepare financial future

Indeed, no one can predict the future. However, by doing a financial check-up, we can know how our financial condition will be in the future. So if for example the condition worsens like at the beginning of the pandemic, if we have done a financial check-up, we will know how hard the “dark times” must be, and then we can prepare better. And we will know, how long we can survive, even without income, and then find the best solution to overcome this situation.

6. To be wiser in using company money

Sometimes we like to be unconscious in spending money, especially when the expenses feel small. In fact, according to Benjamin Franklin, small expenses that are not recorded can boomerang or sink large ships. This Financial Check Up will help business leaders to find out how to use and condition their cash flow. Proper record keeping will help in cutting unnecessary expenses. If everything goes right, it will be easy for you to organize your other affairs

Those are 6 reasons why you should evaluate your company's finances so that it is always healthy and your business has a long life

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